Changes in the United States Dollar’s Hegemony and Macroeconomic Implications

Abstract

As a global currency, the United States dollar not only relates to the flow of global capital markets and the pricing of funds, but also has an important and far-reaching impact on the global macroeconomy. There has been growing interest on the topic of how the position of the United States dollar would change and how it will be reflected in various circumstances and situations, in the last few years. This paper used data to analyze the changes in the hegemony of the USD and macroeconomic implications. With the growth of other currencies in the market nowadays, the hegemony of the USD is being questioned. A slight decline of the US dollar as a global currency has been shown in statistics. However, the United States dollar is still retaining its power and its key roles around the world, internationally as a dominant currency. The threats from other emerging currencies are not yet strong enough to change the position of the United States dollar globally from speculations.